DETERMINATION OF ROUTES AND MINIMIZATION OF CERAMIC DISTRIBUTION DISTANCE USING MATRIX SAVINGS METHOD (CASE STUDY: PT. LUCRO INDO JAYA)

Abstract

Distribution is a part of logistics, performing a fundamental function for a company. Distribution is carried out from a number of sources to various destinations so this activity is quite complex, because the distribution channels that are adrift with a long distance make the costs incurred for shipping large enough. The decision to determine the schedule and the delivery route becomes important in order to minimize the time or distance traveled. This study aims to minimize the distance of delivery traveled in the distribution of ceramics to more than one retail by using the savings matrix method. The savings matrix method can be used to schedule a vehicle by taking into account the maximum capacity of the vehicle by combining several delivery points. The purpose of this method is to choose the best assignment of vehicles and routing. This research was conducted using data in the form of ceramic supply at the company, retail demand data, distance of ceramic delivery data in January-December 2018. The savings matrix method is used to determine vehicle scheduling and the Farthest Insert, Nearest Insert, and Nearest Neighbor to determine the optimal route. Based on the results of research and calculations with the savings matrix method in minimizing the distance distribution from the warehouse to 10 (ten) customer destinations located in Tangerang-Jakarta, the distance savings obtained to be 258.9 km, which was previously 302.9 km. The use of the savings matrix method is able to improve the order of delivery routes of the company's distribution so that it reduces shipping mileage and reduces the company's operating costs in terms of product distribution.